Yusheng Sends Pierre a Cheque for $100 with a Note

question 21

Multiple Choice

Yusheng sends Pierre a cheque for $100 with a note saying she will buy his golf clubs if he is willing.Pierre cashes the cheque,but never delivers the clubs.Which of the following describes the situation?

• A)The cheque is considered past consideration and Yusheng has no way to recoup the money.
• B)By cashing the cheque,Pierre has accepted the offer by performance.
• C)The cheque is not sufficient consideration for the golf clubs and Yusheng has no way to recoup the money.
• D)If Pierre put forth an invitation to treat,then he must give the clubs to Yusheng.
• E)Yusheng cannot recoup her money because there was an implied forbearance to sue.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level.

Manufacturing Costs

The total expense involved in the manufacturing process, including direct materials, direct labor, and overhead costs.

Variable Costs

Variable costs are expenses that change directly and proportionally with the level of production or business activity, such as raw materials and direct labor costs.

Direct Materials

Raw materials that are directly incorporated into a final product and can be easily traced to it.